Federal tax hike spurs historic drop in smoking

9:19 PM,
Sep. 10, 2012

A man lights a cigarette with a lighter.

Written by

Dennis Cauchon
USA TODAY

A giant federal tobacco tax hike has spurred a historic drop in smoking, especially among teens, poor people and those dependent on government health insurance, a USA TODAY analysis finds.

President Obama signed the tax hike - the biggest to take effect in his first term - on his 16th day in office, reversing two vetoes by President Bush. The federal cigarette tax jumped from 39 cents to $1.01 per pack on April 1, 2009, to finance expanded health care for children. Since then, the change has brought in more than $30 billion in new revenue, tax records show.